Buy a Business or Start From Scratch

Not everyone interested in starting a business wants to start from scratch.  One alternative is to buy into a franchise.  Another alternative is to buy an ongoing business.  Business publications contain listings of businesses for sale.  One such place to look is bizjournals.com.  You can look up businesses  by state and city.

Of course, you have to know how to value the business or find someone who can do it for you.  You will need to evaluate the financial statements and develop cashflow projections.  A discounted cashflow analysis would be helpful to determine if the pricing of the business is reasonable.  An experienced  certified public accountant can probably guide you through a careful analysis.

For more information about valuing a business, your public library most likely has books in its collection to help you learn about it.  Here is one book to try: How to buy and/or sell a small business for maximum profit: a step-by-step guide with companion CD-ROM by by René V. Richards. You will find it at  Arapahoe Library District.

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About suzanne kaller

Business Librarian at Arapahoe Library District in the suburbs of Denver, Colorado. Engaged in business outreach and general reference serv

Posted on December 28, 2009, in business, Entrepreneurship and tagged , . Bookmark the permalink. Leave a comment.

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